ACME Group has announced plans for a $1.4 billion greenfield green methanol plant in Odisha, marking one of the largest private investments in the green fuel sector in the state. The company has signed an agreement with Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) for the project, which is targeted for commissioning by 2029-30.

Strategic Location and Infrastructure

The greenfield methanol project will be strategically located adjacent to another project for 2,200-tonne green ammonia that the company is setting up in Paradip under the ₹19,000 crore National Green Hydrogen Mission. Anil Taparia, chief operating officer at ACME Group Green Hydrogen and Ammonia Business Unit, emphasized the company's broader expansion plans in the region.

"We are setting up multiple green hydrogen and ammonia projects around Paradip and Gopalpur for both domestic and export purposes," Taparia said. The company already operates a green ammonia facility in Gopalpur through its joint venture with Japan-based IHI Corp.

Market Demand and Global Opportunities

The investment comes amid growing global demand for green methanol, driven by tightening marine fuel standards including the European Union's FuelEU Maritime Regulation and the International Maritime Organisation's targets for net-zero greenhouse gas emissions in global shipping by 2050.

ACME is actively engaging with several global shipping lines to sign offtake agreements for the green methanol project, positioning itself to capitalize on the maritime sector's transition to sustainable fuels.

Funding Strategy and Financial Planning

The project will be funded through a combination of debt, internal accruals, and a potential equity fund raise, though no final decision has been taken on the equity component. Taparia confirmed that discussions with several global financial institutions are currently underway, with IPICOL serving primarily as a facilitator for the project.

Taparia highlighted Odisha's advantages for green methanol production, citing the abundant availability of biogenic feedstock, supportive industrial policies, and low-cost green power supply that create a robust ecosystem for producing green methanol at globally competitive costs.

Existing Portfolio and Future Targets

ACME Group has established a strong foundation in the green fuel sector with multiple projects across different locations:

The company has received six letters of award from Solar Energy Corporation of India Ltd (SECI) under the first tranche of the scheme for green ammonia supply to India's fertilizer sector. Under these agreements, ACME Group will supply 370,000 tonnes per year of green ammonia to major Indian chemicals and fertiliser companies for 10 years.

Industry Competition and Government Support

ACME's investment places it among major players including AM Green, Adani Group, Reliance Industries Ltd, ReNew, Indian Oil Corp., and NTPC Green Ltd, all of whom are investing heavily in India's green hydrogen space. The government is actively working to develop India as an export hub for green hydrogen and its derivatives, backed by large-scale renewable capacity, port access, and policy support under the National Green Hydrogen Mission.

Acme Resources Limited , a base layer NBFC, has released its financial results for the quarter ended September 30, 2025, revealing a significant decline in revenue and profit compared to the same period last year. The company also faces ongoing challenges with the Income Tax Department, which could impact its financial position.

Financial Performance

The company's standalone and consolidated financial results for Q2 FY2026 are as follows:

The standalone figures show a significant year-over-year decline in both revenue and profit. However, on a consolidated basis, the company has managed to increase its revenue from the previous year.

Tax Department Challenges

Acme Resources is currently facing several challenges with the Income Tax Department:

1. Provisional Attachment: During the financial year 2023-24, the Income Tax Department provisionally attached inventory worth Rs. 543.92 lakhs. Of this, Rs. 115.80 lakhs has been released against a bank guarantee.

2. Tax Demand Notices: The company has received substantial tax demand notices for multiple assessment years:

   • Assessment Year 2015-16: Rs. 3,060.28 lakhs
   • Assessment Year 2016-17: Rs. 5,270.35 lakhs
   • Assessment Year 2023-24: Rs. 734.89 lakhs

Acme Resources has challenged these demands before the Commissioner of Income Tax (Appeals).

Company Structure

Acme Resources Limited operates as a base layer NBFC and has two subsidiaries:

1. Ojas Suppliers Limited
2. Atul Agro Private Limited

Auditor's Review

H.N. Pradhan & Co., Chartered Accountants, conducted an independent review of the company's financial results. They noted the tax-related issues in their report but did not modify their conclusion based on these matters.

Outlook

While the company faces significant challenges, particularly with regard to tax demands, it's important to note that these issues are under appeal. The outcome of these appeals could have a material impact on the company's financial position in the future.

Investors and stakeholders should closely monitor the progress of the tax appeals and the company's ability to manage its financial performance in the face of these challenges. The divergence between standalone and consolidated revenue performance also warrants attention, as it may indicate differing fortunes across the group's entities.